Identity Verification and Fraud Prevention – How are they Co-related?

13 Feb 2020

Are your customers who they say they are? That is the fundamental question asked by companies of all sizes who do business in today’s volatile environment. However, mapping a person’s online identity to their real-life identity is a lot more complex than it may seem – especially when the goal is to not only reduce fraud but also drive sales. This is nothing but an Identity Verification crisis.

With so much readily available KYC responses, consumers are at greater risk for identity theft and banks have no idea if they’re dealing with real or fraudulent prospective customers. And even if customers appear at the counter, branch employees or front staff are not experts in identity document verification and are simply not trained to spot sophisticated forgeries.

Having said that, Identity fraud is a growing concern that affects both businesses and customers. Fraudsters now have easier access to more tools and data than ever before, causing identity theft to reach a record high. This chart compares account take over, card, not present and other forms of identity fraud losses and their growth, which continues to rise.

While the digital economy has created unprecedented opportunities for both established and upstart merchants around the world, it is also prone to fraud. Indeed, prevention is the operative word here, because very often fraud is only detected after the spotting them. Hence, we are trying to establish a co-relation between Identity verification and fraud prevention.

It’s a clear indication that businesses need solutions that can leverage a multitude of data sources and powerful algorithms to create layers of identity attributes based on location, email, device, activity, and more. These layers help improve locate rates (the likelihood that an identity can be found and confirmed), even for new consumers with new credit histories. Because layers look at numerous attributes, they also help approve legitimate customers faster and behind the scenes, which reduces friction during onboarding and transactions. Lastly, a layered solution can deter sophisticated fraud schemes, such as collective fraud.

Amid this co-relation between large-scale data breaches, identity theft and account takeover, businesses need a reliable way to determine if someone is who they claim to be online. Accura Scan’s Identity Verification (KYC) helps companies improve conversion rates, comply with Anti-Money Laundering (AML) and KYC regulations, and better detect fraud while delivering a definitive yes/no decision in seconds. Accura Scan’s Identity Verification process uses AI, face-based biometrics and verification techniques to ensure the person behind a transaction is present and who they say are. Identity verification goes well beyond traditional authentication methods to deliver a significantly higher level of assurance and establish a trusted digital identity.

Accura Scan, a pioneer in scanning technology is a perfect solution for the onboarding and KYC of the new customers already being used in Banks, Financial Institutions, NBFCs and scores of customer-oriented organizations and Governments. At Accura Technolabs, it is our mission to replace the manual KYC onboarding. You can check out more information about us here- https://accurascan.com/download